Into the wild in Australia's Wolgan Valley

The people behind Wolgan (who also own the Gulf airline Emirates) wanted to create a refuge from city life that would exist in harmony with the environment. There is no mobile phone coverage and there are virtually no cars. The backdrop is spectacular: lush meadows through which the narrow River Wolgan flows, dense woods high up on the mountain slopes, sandstone peaks which turn a dazzling gold in the sunshine, and kangaroos and wallabies bouncing across the meadows. Nature may have provided the location but there has been no stinting on cost, with luxuries such as a private indoor swimming pool in each of the 40 wooden cabins. Little wonder that scions of the Murdoch family, cricketer Shane Warne and Princess Anne's daughter Zara Phillips have all been to stay.

The first thing we did after arriving was to plunge into our pool, which was surrounded by windows showing off the 270-degree mountain view. Lying in the warm water, taking in the scenery, we were barely aware of the other cabins, which are spread out in a wide circle over an 800-metre-wide stretch of grassy valley. Our reverie was only momentarily interrupted by a gentle crunching sound - a wallaby nibbling at the grass outside our cabin door.

The Wolgan concept is to mix international luxury with the traditional feel of the homestead that used to occupy the site (the old farm buildings still exist and have been restored). This Arab-glitz-meets-the-Outback feel is evident in the furnishings. Almost everything looked spanking new, from the fabulous four-poster to the Nespresso machine, but there were also some homely touches - a plain wooden rocking-chair on the verandah and a pair of mountain bikes, which had already taken a fair bit of punishment.

The hotel is proud of its eco-credentials. Each cabin has its own rainwater butt and there are solar panels discreetly dotted around, while reclaimed materials such as old railway sleepers have been used to construct some of the buildings. The resort also sits on 4,000 acres of private land, so while guests can pamper themselves in the spa and enjoy the outdoor infinity pool at the heart of the hotel, they are also encouraged to explore the wilds on horseback, mountain bike and foot, or even by 4x4 at night.

Riding was the highlight. There are half a dozen horses, and despite being little more than novices, we were soon clopping off on hour-and-a-half rides on our preferred pair of five-year-old geldings, Bandit and Nugget, across streams and meadows and through woods filled with eucalyptus trees and yellow-crested cockatoos.

Going mountain-biking was fun, although somewhat challenging in the heat. In high summer temperatures can go above 35C in the middle of the day. Thankfully, spiders and snakes are only a minor risk, so long as one sticks to the well-marked trails.

After our days exploring the bush, we enjoyed decadent nights gorging on rack of lamb with caramelised fig and mustard sauce and excellent Australian wines from Mudgee, a nearby wine region.

But we left Wolgan wondering just how many Australians can afford to stay. The answer may be quite a few. 'How did we get so rich?' asked the headline in one local financial paper, summing up the confidence that many Australians have in their economy thanks to the minerals boom of recent years. But the cost of living is a shock for visiting Brits, because of the sky-high value of the Australian dollar. So, like the owners of Wolgan, be prepared to blow the budget.
Wolgan Valley Resort & Spa, prices starting from £971 per night for two sharing, full board, including some wines, and two guided activities per day. Private transfers are available from Sydney by car (taking three hours) and helicopter (45 mins). 0061 92 90 97 33; wolganvalley.com